Medtronic has agreed to pay $2.8 million to settle a federal and state False Claims Act lawsuit alleging that the medical device company improperly solicited Medicaid recipients. According to Legal Newsline, the settlement involves 36 states and the federal government.
In 2011, former Medtronic employees sued the company in the U.S. District Court for the Northern District of Texas . Allegedly, the device maker directly solicited Medicaid recipients to replace their insulin infusion pumps. These practices violated a federal Anti-Solicitation Rule and similar state laws, the whistleblowers alleged. The claims for these pumps were therefor submitted to Medicaid programs improperly.
Medtronic will pay $327,000 to settle Medicaid-based claims across the country. On Monday, Pennsylvania Attorney General Kathleen Kane announced that her office joined the settlement; Pennsylvania will receive over $13,000 from the settlement.
The settlement negotiations were conducted by The National Association of Medicaid Fraud Control Units (NAMFCU) on behalf of the states.